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Taiwan's UMC approves additional $3.2 billion for capacity expansion

By Reuters News

By Wen-Yee Lee

TAIPEI, Oct 28 (Reuters) - Taiwanese chipmaker United Microelectronics Corp (UMC) 2303.TW said on Wednesday its board approved approximately $3.2 billion for capacity expansion.

  • The company did not provide a timeline for the additional capital expenditure, saying it was still working with suppliers to accelerate the schedule.

  • UMC said it expected a significant shift in the pricing environment heading into 2027, supported by stronger customer demand and increasing capacity in selected technologies. It expects blended average selling prices (ASPs) to rise 10% in 2027 compared with 2026.

  • The company said it expected AI-related revenue to account for 25% of total revenue in three years.

  • Silicon photonics and advanced packaging are emerging as new growth drivers for UMC, the company said.

  • AI remains a key growth driver, but the company sees a decline in the personal computer segment, it said.

  • UMC – or United Microelectronics Corp – focuses on more mature nodes, unlike Taiwan Semiconductor Manufacturing 2330.TW, the ​world's largest contract chipmaker, which is investing heavily in the ​most advanced ⁠2- and 1-nanometre technology to power artificial intelligence applications.

  • UMC reported third-quarter revenue of T$74.24 billion ($2.29 billion), up 25.6% from a year earlier, while net income was up 9.7% at ⁠T$16.43 billion ($506.75 million).

  • UMC's ​shares have risen 147.5% so far this year, ​outperforming a 62.4% gain in the broader market .TWII. The stock closed up 4.5% on Wednesday ahead of its ​earnings release.

($1 = 32.4220 Taiwan dollars)

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